Ralph Lauren jumps as sales in North America beat expectations

[NEW YORK] Ralph Lauren beat Wall Street's revenue expectations in its fiscal first quarter, buoyed by rebounds in the US and Europe as those markets continue to reopen. The shares jumped in early trading.

Same-store sales, a closely-watched metric, increased 108 per cent on a constant currency basis during the period ending June 26, the company said Tuesday in a statement. That compared with the 97.6 per cent average estimate compiled by Consensus Metrix. Comparable sales jumped 176 per cent in North America, topping estimates.

The results hint at a possible recovery for the upscale apparel company after a challenging stretch during the earlier days of the pandemic. Ralph Lauren grappled with flagging demand as economic lockdowns resulted in temporary store closures in key markets.

The company benefited from "stronger than expected re-openings across North America and Europe," chief executive officer Patrice Louvet said in the statement.

Ralph Lauren sees growth opportunities "even as we continued to manage through Covid-related challenges in select markets and in our global supply chain." In Europe, comparable sales jumped 98 per cent. The performance came despite restrictions in the region due to a slower start to Europe's vaccination campaign.

Comparable sales in Asia rose 43 per cent in the first quarter. The market began recovering earlier than North America and Europe, with China in particular propping up Ralph Lauren's results in recent quarters.

For fiscal 2022, the company said it expects revenue to increase approximately 25 per cent to 30 per cent to last year on a constant currency and 53-week reported basis.

BLOOMBERG